ECONOMY: The cryptocurrency exceeded $ 6,000 value during the weekend, reaching a new record …
- Bitcoin has experienced tremendous inflation in recent months.
- Most economists fear a bubble.
- Its course depends on geopolitics, China and Russia have an ambiguous position on the issue.
500% increase over the year 2017. The bitcoin went back strong after his death was announced countless times (138 in fact, because yes, there is a site that lists this kind of thing ) . Earlier this year, the most famous of the crypto-currency (electronic currency traded in a P2P network) was worth barely $ 1,000 to the unit. In August, she was over 4000. Last Friday, the bitcoin went for the first time the threshold of $ 6,000. Record broken, of course.
If the value is slightly down again since ( 5914.69 dollars for 1 bitcoin Monday ), this exceptional inflation examines the limits of the development of this currency. We report on the future of Bitcoin, and the reasons for its current success.
A geopolitical alignment in Asia
“Historically the bitcoin changes with the geopolitical risk,” says Christopher Dembik, economist at Saxo Bank. Strong fluctuations around the cryptocurrency are linked in particular to Russian, Chinese turnovers in recent weeks. Mid-September, China wanted to ban Bitcoin, plunging its course. Who is rising again after Beijing’s position changes and Moscow.
“China has threatened, but ultimately not, they will regulate, explains Manuel Valente, director of the House of bitcoin in Paris. Russia also blows hot and cold , since Vladimir Poutine met with the founder of Ethereum (second cryptocurrency in terms of current valuation). The governor of the Russian central bank had said to forbid the bitcoin, but the next day Putin has also chosen to regulate, as in China. ”
Conversely, Japan and South Korea have the bitcoin for several months. Tokyo had acknowledged in April 2017 the currency as a currency with legal tender. In September, Japan has become the main bitcoin market worldwide . “There was a lot of good news lately, including a very strong acceptance in South Korea and Japan,” says Manuel Valente.
A bubble that is perhaps not
Okay, 500% in eight months, it looks very much like a bubble. “We can consider that the price is wrong. It is not possible to have such important fluctuations without it being a bubble because you are backed by absolutely nothing: the bitcoin is completely immaterial, unlike gold, “suggests Christopher Dembik who nevertheless warns that “is expected to burst since 2011”.
“There are ” forks “ planned, new currencies being created on the basis of bitcoin.People are preparing for this new money creation by buying a maximum of bitcoins before, making its price climb mechanically, “said for his part the director of the House of bitcoin. According to him, predicting the evolution of the value of money is obviously very difficult, but ” some economists argue is worth what it’s worth, that Bitcoin could rise to several hundred thousand euros.”
A stable technology
The big advantage of Bitcoin is its system of “blockchain” “a real technological interest,” said the economist of Saxo Bank. One of bitcoin will encrypt and fully protect transactions while allowing the transfer of files without keeping a copy, allowing its use as money and ensures stability.
Also, this is a very durable system of censorship: “If you want to stop the bitcoin in a given territory, described Manuel Valente, the only way you have is encrypted to prevent any outgoing connection, which is impossible to unless its own Internet as North Korea. ”
Note that there are 21 million bitcoins in the world, not one more or less, the total amount being strictly limited “technical feature that makes it interesting in the long term” and the closer “by his financial operation reliable values as a precious metal, “says Manuel Valente.